The document discusses the transition from direct exchange to indirect exchange through money. It explains the drawbacks of direct exchange, such as the need for a double coincidence of wants. Indirect exchange through a commonly accepted medium of exchange, or money, provides a solution to these drawbacks. The document defines money and distinguishes its marketability from its value, discussing how money originated from commonly accepted goods and how units of money developed.

1. Mises Academy
Austrian Econ I:
Praxeology Through Price
Theory
Robert P. Murphy
Spring 2011
Lecture 5
May 26

2. 1st
half Chapter 3
1.Direct vs. Indirect
Exchange
II. Drawbacks of Direct
Exchange
III. Indirect Exchange the
Solution
IV. Money and Its Origin
A. Definition
B. Marketability vs. Value
V. The Unit of Money

3. I. Direct vs. Indirect Exchange

4. II. Drawbacks of Direct Exchange

5. II. Drawbacks (cont’d)

6. III. Indirect Exchange the Solution

7. IV. Money and Its Origin

8. A. Definition
Money is a
●medium of exchange
that is
●commonly accepted.

9. B. Marketability vs. Value

10. V. The Unit of Money